LONDON — Semiconductor manufacturing at Freescale's plant at East Kilbride will stop by the middle of next year. The decision follows the result of consultations with an Employee Forum about the future of the operation over the past three months.

In a statement Tuesday (Oct.14) the company said it will now enter into individual consultation with almost 800 employees who are at risk of redundancy.

The bland statement from Freescale said: "All possibilities for the factory have now been fully explored and the decision has been reached to cease manufacturing. According to current business forecasts, production is expected to end by mid 2009."

Freescale added its priority is "to provide the best possible support to employees who are facing redundancy next year and an extensive outplacement service will be made available to all affected employees."

The company announced in July 2007 that due to market conditions and demand for East Kilbride technologies, it would carry out a review of strategic options for the facility. Four options were identified at this time, the preferred option being sale as an ongoing concern.

In May this year, the company announced that as a sale looked unlikely, a formal consultation process would begin with employee representatives on the remaining options and any new options proposed by staff.

A month later following examination of the company's business case for East Kilbride manufacturing operations and customer requirement forecasts, the company said the only remaining option appeared to be potential closure and commenced a formal consultation process on proposed closure.

About 1,000 people work on the site, with 800 directly involved in manufacturing. Freescale stressed the R&D functions currently operating at the location would continue on the site.

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